Over 11.44 lakh ‘fake, duplicate’ PANs deactivated

Over 11.44 lakh ‘fake, duplicate’ PANs deactivated: Government

More than 11.44 lakh permanent account numbers (PANs) were deleted or de-activated in cases where multiple PANs were found allotted to one person, Parliament was informed on Tuesday.

Over 11.44 lakh 'fake, duplicate' PANs deactivated: Government

More than 11.44 lakh permanent account numbers (PANs) were deleted or de-activated in cases where multiple PANs were found allotted to one person, Parliament was informed on Tuesday.

This was informed by Minister of State for Finance Santosh Kumar Gangwar in a written reply to the Rajya Sabha.

“As on July 27, 11,44,211 PANs have been identified and deleted or de-activated in cases where multiple PANs were found allotted to one person,” the minister said.

PAN is the key identifier of taxable entity and aggregator of all financial transactions undertaken by one person.

“One PAN for one person is the guiding principle for allotment of PAN,” Gangwar said.

He further said that as on July 27, 1,566 PANs have been identified as ‘fake’ which were allotted to either non-existent person or in the names of persons with false identities.

The facility to delete or de-activate the PAN is available with the Assessing Officer through application software.

During 2004 to 2007 also, an exercise for de-duplication of PAN was conducted in the tax department to identify probable duplicate PANs.

Replying to a question on recovery of undisclosed income post demonetisation, Gangwar said the Income Tax Department conducted searches in 900 groups of persons during November 2016 to March 2017, leading to seizure of Rs 900 crore and admission of undisclosed income of Rs 7,961 crore.

Besides, 8,239 surveys were conducted leading to detection of undisclosed income of Rs 6,745 crore.

“Information of various kinds of wrong-doings by about 400 persons was also shared with other law enforcement agencies such as Enforcement Directorate and Central Bureau of Investigation for appropriate action,” he said.

He further said during the current financial year (till June end) the department conducted searches in 102 groups, seizing assets worth Rs 103 crore.

Referring to the launch of ‘Operation Clean Money’ on January 31, Gangwar said about 18 lakh persons whose cash transactions did not appear in line with their tax profile were identified and approached through email/SMS.

Over 9.27 lakh responses were received giving information on 13.33 lakh accounts involving cash deposits of around Rs 2.89 lakh crore.

“Advance data analytics tools were deployed which further identified 5.56 lakhs new cases and about 1 lakh those cases in which either partial or no response was received in the earlier phase. Besides, about 200 high risk clusters of persons were identified for appropriate action,” the minister added.

-August 2, 2017, New Delhi

Demonetisation impact: Nine lakh accounts under Operation

Demonetisation impact: Nine lakh accounts under Operation Clean Money ‘doubtful’

Demonetisation impact: Nine lakh accounts under Operation Clean Money 'doubtful'

Nearly half of the 18 lakh people under the I-T scanner for suspicious bank deposits post cash ban have been put in the ‘doubtful’ category, but action against them will follow only after the new tax amnesty scheme ends on March 31.

Under ‘Operation Clean Money’, the I-T department had sent SMS and e-mails to 18 lakh people, who according to its data analysis had made suspicious deposits of over Rs 5 lakh during the 50-day window provided to get rid of old 500 and 1,000 rupee notes following the demonetisation decision announced on November 8. They were asked to clarify on the deposits and their source by February 15.

Sources in the government said those who did not reply must have “good legal explanation” for their cash deposits and may have chosen to show them in tax returns.

But a mere showing the same in income tax returns is not sufficient as any abnormal rise in income for 2016-17 over previous years will be considered as unaccounted wealth or blackmoney and treated as per law.

“However, since the SMS and e-mail correspondence do not have any legal backing, the department will have to send formal notices and then wait till March 31 for the end of (tax amnesty scheme) PMGKY and then take action against doubtful cases,” a source told PTI.

Since Pradhan Mantri Garib Kalyan Yojana (PMGKY) runs till March 31, action against any depositor can be taken only after the scheme closes as the depositor may choose to disclose the wealth and pay taxes.

Under PMGKY, those with unaccounted cash have been offered a chance to come clean by paying 50 percent of it as tax, penalty and surcharge while parking an additional 25 percent in a non-interest bearing deposit for four years.

Sources said as many as 9 lakh accounts of the 18 lakh people who have got SMS are considered “doubtful”.

As many as 5.27 lakh assessees, out of 18 lakh who were sent SMS and e-mails, had submitted their response till February 12.

As many as 99.5 percent of the 5.27 lakh assessees have confirmed the amount which they have deposited as cash during the 50-day demonetisation ended December 30. These deposits were made in 7.41 lakh bank accounts.

The source further said strict enforcement action can only be taken if an assessee does not reply to notices or deliberately try to concoct disclosures in ITR.

The tax department has also identified around 4.84 lakh taxpayers not yet registered with the e-filing portal and has sent SMS to them to register.

-February 16, 2017, New Delhi